National Express LLC--Acquisition of Control--White Plains Bus Company, Inc. |
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Topics: White Plains Bus
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Tia Delano
U.S. Department of Transportation
December 23, 2015
[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)]
[Notices]
[Pages 79993-79995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32313]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. MCF 21065]
National Express LLC--Acquisition of Control--White Plains Bus
Company, Inc.
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice Tentatively Approving and Authorizing Finance
Transaction.
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SUMMARY: On November 23, 2015, National Express LLC (National Express
or Applicant), a non-carrier, filed an application under 49 U.S.C.
14303 so that it can acquire common control of White Plains Bus
Company, Inc. (White Plains). The Board is tentatively approving and
authorizing the transaction, and, if no opposing comments are timely
filed, this notice will be the final Board action. Persons wishing to
oppose the application must follow the rules at 49 CFR 1182.5 and
1182.8.
DATES: Comments must be filed by February 8, 2016. Applicant may file a
reply by February 22, 2016. If no comments are filed by February 8,
2016, this notice shall be effective on February 9, 2016.
ADDRESSES: Send an original and 10 copies of any comments referring to
Docket No. MCF 21065 to: Surface Transportation Board, 395 E Street
SW., Washington, DC 20423-0001. In addition, send one copy of comments
to Applicant's representative: Andrew K. Light, Scopelitis, Garvin,
Light, Hanson & Feary, P.C., 10 W. Market Street, Suite 1500,
Indianapolis, IN 46204.
FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe (202) 245-0376.
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.
SUPPLEMENTARY INFORMATION: Applicant, a non-carrier, states that it is
a holding company organized under the laws of the state of Delaware.
According to Applicant, it is indirectly controlled by a British
corporation, National Express Group, PLC (Express Group). Applicant
states that Express Group indirectly controls the following passenger
motor carriers (National Express Affiliated Carriers): Beck Bus
Transportation Corp. (Beck), Carrier Management Corporation (CMI),
Durham School Services, L.P. (Durham), MV Student Transportation, Inc.
(MV), National Express Transit Corporation (NETC), National Express
Transit Services Corporation (NETSC), Petermann Ltd. (LTD), Petermann
Northeast LLC (Northeast), Petermann Northwest LLC (Northwest),
Petermann Southwest LLC (Southwest), Petermann STSA, LLC (STSA), Trans
Express, Inc. (Trans Express), and Rainbow Management Service Inc.
(Rainbow).
Applicant alleges the following facts regarding a number of
interstate and intrastate for-hire passenger motor carrier authorities
collectively held by the National Express Affiliated Carriers:
Beck is a passenger motor carrier primarily engaged in
providing student school bus transportation services in the states of
Illinois and Indiana under contracts with regional and local school
jurisdictions. Beck also provides charter passenger services to the
public.
CMI is a passenger motor carrier doing business as
Matthews Bus Company and is primarily engaged in providing student
school bus transportation services in the state of Pennsylvania under
contracts with regional and local school jurisdictions. CMI also
provides intrastate charter passenger services to the public.
Durham is a passenger motor carrier primarily engaged in
providing student school bus transportation services in approximately
32 states under contracts
[[Page 79994]]
with regional and local school jurisdictions. Durham also provides
charter passenger services to the public.
MV is a passenger motor carrier primarily engaged in
providing student school bus transportation services in the state of
Missouri under contracts with regional and local school jurisdictions.
MV also provides charter passenger services to the public.
NETC is an intrastate passenger motor carrier incorporated
under the laws of the state of Delaware.
NETSC is a passenger motor carrier engaged primarily in
providing intrastate transit services in the areas of Westmoreland,
Pa.; Arlington, Va.; Greensboro, N.C.; Vallejo, Cal.; and Yuma, Ariz.
LTD is a passenger motor carrier primarily engaged in
providing student school bus transportation services in the state of
Ohio under contracts with regional and local school jurisdictions. LTD
also provides charter passenger services to the public.
Northeast is a passenger motor carrier primarily engaged
in providing student school bus transportation services, primarily in
the states of Ohio and Pennsylvania under contracts with regional and
local school jurisdictions. Northeast also provides charter passenger
services to the public.
Northwest's principal place of business is located in
Oakland, Cal.
Southwest is a passenger motor carrier primarily engaged
in providing student school bus transportation services in the state of
Texas under contracts with regional and local school jurisdictions. In
addition to its core school bus services, Southwest also provides
charter passenger services to the public.
STSA is a passenger motor carrier primarily engaged in
providing student school bus transportation services, primarily in the
state of Kansas under contracts with regional and local school
jurisdictions. STSA also provides charter passenger services to the
public.
Trans Express provides point-to-point intrastate passenger
transportation services between the boroughs of Brooklyn and Manhattan
in the state of New York pursuant to authority provided by the New York
Department of Transportation. Rainbow provides interstate and
intrastate charter and special party passenger transportation services
in the areas of New York City and the state of New York.
Applicant states that White Plains is a New York corporation that
holds authority from the Federal Motor Carrier Safety Administration as
a motor carrier of passengers (MC-160624). Applicant explains that the
three shareholders of White Plains are Stephen Lennox, Terence Lennox,
and John Silvanie.\1\
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\1\ Stephen Lennox, Terence Lennox, and John Silvanie also
commonly own Suburban Charter Service Inc., a New York corporation,
which is not part of this transaction.
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Applicant states that White Plains operates primarily as a provider
of non-regulated school bus transportation services, transporting
children to and from school throughout the State of New York. White
Plains also operates as a motor passenger carrier providing charter
service to the public using its fleet of buses and vans. White Plains
maintains a fleet of roughly 264 buses and transit vans and has
approximately 154 drivers.
Applicant explains that National Express would assume direct 100
percent control of White Plains through stock ownership.
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction that it finds consistent with the public interest, taking
into consideration at least: (1) The effect of the proposed transaction
on the adequacy of transportation to the public; (2) the total fixed
charges that result; and (3) the interest of affected carrier
employees. Applicant submitted information, as required by 49 CFR
1182.2, including information to demonstrate that the proposed
transaction is consistent with the public interest under 49 U.S.C.
14303(b), and a statement that the aggregate gross operating revenues
of the National Express Affiliated Carriers and White Plains exceeded
$2 million for the preceding 12-month period. See 49 U.S.C. 14303(g).
Applicant submits that the proposed transaction would have no
significant impact on the adequacy of transportation services to the
public. According to Applicant, White Plains would continue to provide
the services it currently provides using the same names for the
foreseeable future. Applicant states that White Plains ``will continue
to operate, but going forward, it will be operating within the National
Express corporate family, an organization already thoroughly
experienced in passenger transportation operations.'' (Appl. 10.)
Applicant states that ``[t]he addition of [White Plains] to the
National Express group is consistent with the practices within the
passenger motor carrier industry of strong, well-managed transportation
organizations adapting their corporate structure to operate several
different passenger carriers within the same market niche but in
different geographic areas.'' (Appl. 10.) Applicant asserts that White
Plains is experienced in some of the same market segments already
served by National Express and some of the National Express Affiliated
Carriers. Applicant expects the transaction to result in operating
efficiencies and cost savings derived from economies of scale, all of
which would help to ensure the provision of adequate service to the
public.
Applicant also submits that, ``[b]ringing [White Plains] within the
National Express family will serve to enhance the viability of the
overall National Express organization'' and therefore the continued
availability of adequate passenger transportation service for the
public. (Appl. 11.)
Applicant further claims that neither competition nor the public
interest would be adversely affected. According to Applicant, White
Plains is a relatively small carrier in the overall markets in which it
competes: intrastate point-to-point passenger service, and interstate
and intrastate charter and special party passenger service. Applicant
states that school bus operators typically occupy a limited portion of
the charter business because (i) the equipment offered is not as
comfortable as that offered by motor coach operators; and (ii)
scheduling demands imposed by the primary school bus operation impose
major constraints on charter services that can be offered by school bus
operators. Applicant argues that even as a provider of charter
services, White Plains operates a small fleet that does not have market
power. It explains that the charter operations of White Plains are
geographically dispersed and there is little overlap in service areas
and/or in customer bases between the National Express Affiliated
Carriers and White Plains.
Applicant asserts there are no fixed charges associated with the
contemplated transaction or the proposed acquisition of control.
Applicant also states that it does not anticipate a measurable
reduction in force or changes in compensation and benefits, though some
limited downsizing of back office or managerial level personnel could
occur.
The Board finds that the acquisition proposed in the application is
consistent with the public interest and should be tentatively approved
and authorized. If any opposing comments are timely filed, these
findings will be deemed vacated, and, unless a final decision can be
made on the record as developed, a procedural schedule will be adopted
to reconsider the application. See 49 CFR 1182.6(c). If no opposing
comments are filed by the
[[Page 79995]]
expiration of the comment period, this notice will take effect
automatically and will be the final Board action.
Board decisions and notices are available on our Web site at
``WWW.STB.DOT.GOV''.
It is ordered:
1. The proposed transaction is approved and authorized, subject to
the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective February 9, 2016, unless opposing
comments are filed by February 8, 2016.
4. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW.,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of the General Counsel, 1200 New Jersey Avenue SE., Washington,
DC 20590.
Decided: December 17, 2015.
By the Board, Chairman Elliott, Vice Chairman Begeman, and
Commissioner Miller.
Tia Delano,
Clearance Clerk.
[FR Doc. 2015-32313 Filed 12-22-15; 8:45 am]
BILLING CODE 4915-01-P